DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
CORRECT ANSWERS ARE LOCATED AT THE SECOND PART OF THIS
DOCUMENT
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
1) Dobosh Corporation has provided the following information:
Cost per Cost per
Unit Period
Direct materials $ 7.05
Direct labor $ 3.65
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 113,400
Sales commissions $ 1.50
Variable administrative expense $ 0.55
Fixed selling and administrative expense $ 36,450
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make
9,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell
9,000 units?
c. If 10,000 units are sold, what is the variable cost per unit sold?
d. If 10,000 units are sold, what is the total amount of variable costs related to the units sold?
e. If 10,000 units are produced, what is the total amount of manufacturing overhead cost
incurred?
f. If the selling price is $21.60 per unit, what is the contribution margin per unit sold?
g. If 8,000 units are produced, what is the total amount of direct manufacturing cost incurred?
h. If 8,000 units are produced, what is the total amount of indirect manufacturing costs
incurred?
i. What incremental manufacturing cost will the company incur if it increases production from
9,000 to 9,001 units?
Version 1 1
mynursytest.store
,DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
Question Details
AACSB : Analytical Thinking
AICPA : BB Critical Thinking
AICPA : FN Measurement
Bloom's : Apply
Type : Static
Difficulty : 1 Easy
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-01 Understand cost classifications used for assigning costs to cost objects:
Learning Objective : 01-03 Understand cost classifications used to prepare financial statements: prod
Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c
Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co
Learning Objective : 01-05 Understand cost classifications used in making decisions: relevant costs a
Learning Objective : 01-06 Prepare income statements for a merchandising company using the traditiona
Topic : Cost Classifications for Assigning Costs to Cost Objects
Topic : Cost Classifications for Decision Making
Topic : Cost Classifications for Manufacturing Companies
Topic : Cost Classifications for Predicting Cost Behavior
Topic : Cost Classifications for Preparing Financial Statements
Topic : Using Different Cost Classifications for Different Purposes
Gradable : manual
2) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it
produces and sells 5,900 units, its average costs per unit are as follows:
Average Cost per
Unit
Direct materials $5.80
Direct labor $3.80
Variable manufacturing overhead $1.40
Fixed manufacturing overhead $4.20
Fixed selling expense $0.60
Fixed administrative expense $0.45
Sales commissions $0.35
Variable administrative expense $0.35
Version 1 2
mynursytest.store
,DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make
5,900 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell
5,900 units?
c. If 6,900 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to
2 decimal places.)
d. If 6,900 units are sold, what is the total amount of variable costs related to the units sold?
e. If 6,900 units are produced, what is the average fixed manufacturing cost per unit produced?
(Round "Per unit" answer to 2 decimal places.)
f. If 6,900 units are produced, what is the total amount of fixed manufacturing cost incurred?
g. If 6,900 units are produced, what is the total amount of manufacturing overhead cost
incurred? What is this total amount expressed on a per unit basis? (Round "Per unit" answer to
2 decimal places.)
h. If the selling price is $23.30 per unit, what is the contribution margin per unit sold? (Round
"Per unit" answer to 2 decimal places.)
i. If 4,900 units are produced, what is the total amount of direct manufacturing cost incurred?
j. If 4,900 units are produced, what is the total amount of indirect manufacturing cost incurred?
k. What incremental manufacturing cost will the company incur if it increases production from
5,900 to 5,901 units? (Round "Per unit" answer to 2 decimal places.)
Version 1 3
mynursytest.store
,DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
Question Details
AACSB : Analytical Thinking
AICPA : BB Critical Thinking
AICPA : FN Measurement
Bloom's : Apply
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
Learning Objective : 01-01 Understand cost classifications used for assigning costs to cost objects:
Learning Objective : 01-03 Understand cost classifications used to prepare financial statements: prod
Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c
Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co
Learning Objective : 01-05 Understand cost classifications used in making decisions: relevant costs a
Learning Objective : 01-06 Prepare income statements for a merchandising company using the traditiona
Type : Algorithmic
Topic : Cost Classifications for Assigning Costs to Cost Objects
Topic : Cost Classifications for Decision Making
Topic : Cost Classifications for Manufacturing Companies
Topic : Cost Classifications for Predicting Cost Behavior
Topic : Cost Classifications for Preparing Financial Statements
Topic : Using Different Cost Classifications for Different Purposes
null : Question Focus: Quantitative
Gradable : manual
3) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it
produces and sells 5,000 units, its average costs per unit are as follows:
Average Cost per
Unit
Direct materials $5.30
Direct labor $3.65
Variable manufacturing overhead $1.50
Fixed manufacturing overhead $3.90
Fixed selling expense $0.75
Fixed administrative expense $0.60
Sales commissions $0.50
Variable administrative expense $0.50
Version 1 4
mynursytest.store
,DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make
5,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell
5,000 units?
c. If 6,000 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to
2 decimal places.)
d. If 6,000 units are sold, what is the total amount of variable costs related to the units sold?
e. If 6,000 units are produced, what is the average fixed manufacturing cost per unit produced?
(Round "Per unit" answer to 2 decimal places.)
f. If 6,000 units are produced, what is the total amount of fixed manufacturing cost incurred?
g. If 6,000 units are produced, what is the total amount of manufacturing overhead cost
incurred? What is this total amount expressed on a per unit basis? (Round "Per unit" answer to
2 decimal places.)
h. If the selling price is $22.90 per unit, what is the contribution margin per unit sold? (Round
"Per unit" answer to 2 decimal places.)
i. If 4,000 units are produced, what is the total amount of direct manufacturing cost incurred?
j. If 4,000 units are produced, what is the total amount of indirect manufacturing cost incurred?
k. What incremental manufacturing cost will the company incur if it increases production from
5,000 to 5,001 units? (Round "Per unit" answer to 2 decimal places.)
Version 1 5
mynursytest.store
,DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
Question Details
AACSB : Analytical Thinking
AICPA : BB Critical Thinking
AICPA : FN Measurement
Bloom's : Apply
Type : Static
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
Learning Objective : 01-01 Understand cost classifications used for assigning costs to cost objects:
Learning Objective : 01-03 Understand cost classifications used to prepare financial statements: prod
Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c
Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co
Learning Objective : 01-05 Understand cost classifications used in making decisions: relevant costs a
Learning Objective : 01-06 Prepare income statements for a merchandising company using the traditiona
Topic : Cost Classifications for Assigning Costs to Cost Objects
Topic : Cost Classifications for Decision Making
Topic : Cost Classifications for Manufacturing Companies
Topic : Cost Classifications for Predicting Cost Behavior
Topic : Cost Classifications for Preparing Financial Statements
Topic : Using Different Cost Classifications for Different Purposes
null : Question Focus: Quantitative
Gradable : manual
4) Myklebust Corporation's relevant range of activity is 4,000 units to 8,000 units. When it
produces and sells 6,000 units, its average costs per unit are as follows:
Average Cost per
Unit
Direct materials $6.40
Direct labor $3.80
Variable manufacturing overhead $1.60
Fixed manufacturing overhead $3.00
Fixed selling expense $0.75
Fixed administrative expense $0.60
Sales commissions $1.50
Variable administrative expense $0.45
Version 1 6
mynursytest.store
,DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
Required:
a.For financial reporting purposes, what is the total amount of product costs incurred to make
6,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell
6,000 units?
c. If the selling price is $20.20 per unit, what is the contribution margin per unit sold?
d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred?
e. If 7,000 units are produced, what is the total amount of indirect manufacturing cost incurred?
f. What incremental manufacturing cost will the company incur if it increases production from
6,000 to 6,001 units?
Question Details
AACSB : Analytical Thinking
AICPA : BB Critical Thinking
AICPA : FN Measurement
Bloom's : Apply
Type : Static
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
Learning Objective : 01-01 Understand cost classifications used for assigning costs to cost objects:
Learning Objective : 01-03 Understand cost classifications used to prepare financial statements: prod
Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c
Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co
Learning Objective : 01-05 Understand cost classifications used in making decisions: relevant costs a
Learning Objective : 01-06 Prepare income statements for a merchandising company using the traditiona
Topic : Cost Classifications for Assigning Costs to Cost Objects
Topic : Cost Classifications for Decision Making
Topic : Cost Classifications for Manufacturing Companies
Topic : Cost Classifications for Predicting Cost Behavior
Topic : Cost Classifications for Preparing Financial Statements
Topic : Using Different Cost Classifications for Different Purposes
Gradable : manual
5) Learned Corporation has provided the following information:
Version 1 7
mynursytest.store
,DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
Cost per Cost per
Unit Period
Direct materials $ 5.40
Direct labor $ 3.80
Variable manufacturing overhead $ 1.40
Fixed manufacturing overhead $ 38,250
Sales commissions $ 0.80
Variable administrative expense $ 0.70
Fixed selling and administrative expense $ 12,750
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make
8,500 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell
8,500 units?
c. If the selling price is $22.90 per unit, what is the contribution margin per unit sold? (Round
your answer to 2 decimal places.)
d. If 9,500 units are produced, what is the total amount of direct manufacturing cost incurred?
e. If 9,500 units are produced, what is the total amount of indirect manufacturing costs
incurred?
Version 1 8
mynursytest.store
,DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
Question Details
AACSB : Analytical Thinking
AICPA : BB Critical Thinking
AICPA : FN Measurement
Bloom's : Apply
Difficulty : 1 Easy
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-01 Understand cost classifications used for assigning costs to cost objects:
Learning Objective : 01-03 Understand cost classifications used to prepare financial statements: prod
Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c
Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co
Learning Objective : 01-06 Prepare income statements for a merchandising company using the traditiona
Type : Algorithmic
Topic : Cost Classifications for Assigning Costs to Cost Objects
Topic : Cost Classifications for Manufacturing Companies
Topic : Cost Classifications for Predicting Cost Behavior
Topic : Cost Classifications for Preparing Financial Statements
Topic : Using Different Cost Classifications for Different Purposes
null : Question Focus: Quantitative
Gradable : manual
6) Learned Corporation has provided the following information:
Cost per Cost per
Unit Period
Direct materials $ 5.20
Direct labor $ 3.85
Variable manufacturing overhead $ 1.35
Fixed manufacturing overhead $ 27,000
Sales commissions $ 0.50
Variable administrative expense $ 0.40
Fixed selling and administrative expense $ 9,000
Version 1 9
mynursytest.store
, DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make
6,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell
6,000 units?
c. If the selling price is $22.40 per unit, what is the contribution margin per unit sold? (Round
your answer to 2 decimal places.)
d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred?
e. If 7,000 units are produced, what is the total amount of indirect manufacturing costs
incurred?
Question Details
AACSB : Analytical Thinking
AICPA : BB Critical Thinking
AICPA : FN Measurement
Bloom's : Apply
Type : Static
Difficulty : 1 Easy
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-01 Understand cost classifications used for assigning costs to cost objects:
Learning Objective : 01-03 Understand cost classifications used to prepare financial statements: prod
Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c
Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co
Learning Objective : 01-06 Prepare income statements for a merchandising company using the traditiona
Topic : Cost Classifications for Assigning Costs to Cost Objects
Topic : Cost Classifications for Manufacturing Companies
Topic : Cost Classifications for Predicting Cost Behavior
Topic : Cost Classifications for Preparing Financial Statements
Topic : Using Different Cost Classifications for Different Purposes
null : Question Focus: Quantitative
Gradable : manual
7) Arman Corporation's relevant range of activity is 3,000 units to 7,000 units. When it
produces and sells 5,000 units, its average costs per unit are as follows:
Average Cost per
Version 1 10
mynursytest.store
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
CORRECT ANSWERS ARE LOCATED AT THE SECOND PART OF THIS
DOCUMENT
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
1) Dobosh Corporation has provided the following information:
Cost per Cost per
Unit Period
Direct materials $ 7.05
Direct labor $ 3.65
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 113,400
Sales commissions $ 1.50
Variable administrative expense $ 0.55
Fixed selling and administrative expense $ 36,450
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make
9,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell
9,000 units?
c. If 10,000 units are sold, what is the variable cost per unit sold?
d. If 10,000 units are sold, what is the total amount of variable costs related to the units sold?
e. If 10,000 units are produced, what is the total amount of manufacturing overhead cost
incurred?
f. If the selling price is $21.60 per unit, what is the contribution margin per unit sold?
g. If 8,000 units are produced, what is the total amount of direct manufacturing cost incurred?
h. If 8,000 units are produced, what is the total amount of indirect manufacturing costs
incurred?
i. What incremental manufacturing cost will the company incur if it increases production from
9,000 to 9,001 units?
Version 1 1
mynursytest.store
,DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
Question Details
AACSB : Analytical Thinking
AICPA : BB Critical Thinking
AICPA : FN Measurement
Bloom's : Apply
Type : Static
Difficulty : 1 Easy
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-01 Understand cost classifications used for assigning costs to cost objects:
Learning Objective : 01-03 Understand cost classifications used to prepare financial statements: prod
Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c
Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co
Learning Objective : 01-05 Understand cost classifications used in making decisions: relevant costs a
Learning Objective : 01-06 Prepare income statements for a merchandising company using the traditiona
Topic : Cost Classifications for Assigning Costs to Cost Objects
Topic : Cost Classifications for Decision Making
Topic : Cost Classifications for Manufacturing Companies
Topic : Cost Classifications for Predicting Cost Behavior
Topic : Cost Classifications for Preparing Financial Statements
Topic : Using Different Cost Classifications for Different Purposes
Gradable : manual
2) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it
produces and sells 5,900 units, its average costs per unit are as follows:
Average Cost per
Unit
Direct materials $5.80
Direct labor $3.80
Variable manufacturing overhead $1.40
Fixed manufacturing overhead $4.20
Fixed selling expense $0.60
Fixed administrative expense $0.45
Sales commissions $0.35
Variable administrative expense $0.35
Version 1 2
mynursytest.store
,DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make
5,900 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell
5,900 units?
c. If 6,900 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to
2 decimal places.)
d. If 6,900 units are sold, what is the total amount of variable costs related to the units sold?
e. If 6,900 units are produced, what is the average fixed manufacturing cost per unit produced?
(Round "Per unit" answer to 2 decimal places.)
f. If 6,900 units are produced, what is the total amount of fixed manufacturing cost incurred?
g. If 6,900 units are produced, what is the total amount of manufacturing overhead cost
incurred? What is this total amount expressed on a per unit basis? (Round "Per unit" answer to
2 decimal places.)
h. If the selling price is $23.30 per unit, what is the contribution margin per unit sold? (Round
"Per unit" answer to 2 decimal places.)
i. If 4,900 units are produced, what is the total amount of direct manufacturing cost incurred?
j. If 4,900 units are produced, what is the total amount of indirect manufacturing cost incurred?
k. What incremental manufacturing cost will the company incur if it increases production from
5,900 to 5,901 units? (Round "Per unit" answer to 2 decimal places.)
Version 1 3
mynursytest.store
,DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
Question Details
AACSB : Analytical Thinking
AICPA : BB Critical Thinking
AICPA : FN Measurement
Bloom's : Apply
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
Learning Objective : 01-01 Understand cost classifications used for assigning costs to cost objects:
Learning Objective : 01-03 Understand cost classifications used to prepare financial statements: prod
Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c
Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co
Learning Objective : 01-05 Understand cost classifications used in making decisions: relevant costs a
Learning Objective : 01-06 Prepare income statements for a merchandising company using the traditiona
Type : Algorithmic
Topic : Cost Classifications for Assigning Costs to Cost Objects
Topic : Cost Classifications for Decision Making
Topic : Cost Classifications for Manufacturing Companies
Topic : Cost Classifications for Predicting Cost Behavior
Topic : Cost Classifications for Preparing Financial Statements
Topic : Using Different Cost Classifications for Different Purposes
null : Question Focus: Quantitative
Gradable : manual
3) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it
produces and sells 5,000 units, its average costs per unit are as follows:
Average Cost per
Unit
Direct materials $5.30
Direct labor $3.65
Variable manufacturing overhead $1.50
Fixed manufacturing overhead $3.90
Fixed selling expense $0.75
Fixed administrative expense $0.60
Sales commissions $0.50
Variable administrative expense $0.50
Version 1 4
mynursytest.store
,DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make
5,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell
5,000 units?
c. If 6,000 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to
2 decimal places.)
d. If 6,000 units are sold, what is the total amount of variable costs related to the units sold?
e. If 6,000 units are produced, what is the average fixed manufacturing cost per unit produced?
(Round "Per unit" answer to 2 decimal places.)
f. If 6,000 units are produced, what is the total amount of fixed manufacturing cost incurred?
g. If 6,000 units are produced, what is the total amount of manufacturing overhead cost
incurred? What is this total amount expressed on a per unit basis? (Round "Per unit" answer to
2 decimal places.)
h. If the selling price is $22.90 per unit, what is the contribution margin per unit sold? (Round
"Per unit" answer to 2 decimal places.)
i. If 4,000 units are produced, what is the total amount of direct manufacturing cost incurred?
j. If 4,000 units are produced, what is the total amount of indirect manufacturing cost incurred?
k. What incremental manufacturing cost will the company incur if it increases production from
5,000 to 5,001 units? (Round "Per unit" answer to 2 decimal places.)
Version 1 5
mynursytest.store
,DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
Question Details
AACSB : Analytical Thinking
AICPA : BB Critical Thinking
AICPA : FN Measurement
Bloom's : Apply
Type : Static
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
Learning Objective : 01-01 Understand cost classifications used for assigning costs to cost objects:
Learning Objective : 01-03 Understand cost classifications used to prepare financial statements: prod
Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c
Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co
Learning Objective : 01-05 Understand cost classifications used in making decisions: relevant costs a
Learning Objective : 01-06 Prepare income statements for a merchandising company using the traditiona
Topic : Cost Classifications for Assigning Costs to Cost Objects
Topic : Cost Classifications for Decision Making
Topic : Cost Classifications for Manufacturing Companies
Topic : Cost Classifications for Predicting Cost Behavior
Topic : Cost Classifications for Preparing Financial Statements
Topic : Using Different Cost Classifications for Different Purposes
null : Question Focus: Quantitative
Gradable : manual
4) Myklebust Corporation's relevant range of activity is 4,000 units to 8,000 units. When it
produces and sells 6,000 units, its average costs per unit are as follows:
Average Cost per
Unit
Direct materials $6.40
Direct labor $3.80
Variable manufacturing overhead $1.60
Fixed manufacturing overhead $3.00
Fixed selling expense $0.75
Fixed administrative expense $0.60
Sales commissions $1.50
Variable administrative expense $0.45
Version 1 6
mynursytest.store
,DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
Required:
a.For financial reporting purposes, what is the total amount of product costs incurred to make
6,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell
6,000 units?
c. If the selling price is $20.20 per unit, what is the contribution margin per unit sold?
d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred?
e. If 7,000 units are produced, what is the total amount of indirect manufacturing cost incurred?
f. What incremental manufacturing cost will the company incur if it increases production from
6,000 to 6,001 units?
Question Details
AACSB : Analytical Thinking
AICPA : BB Critical Thinking
AICPA : FN Measurement
Bloom's : Apply
Type : Static
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
Learning Objective : 01-01 Understand cost classifications used for assigning costs to cost objects:
Learning Objective : 01-03 Understand cost classifications used to prepare financial statements: prod
Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c
Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co
Learning Objective : 01-05 Understand cost classifications used in making decisions: relevant costs a
Learning Objective : 01-06 Prepare income statements for a merchandising company using the traditiona
Topic : Cost Classifications for Assigning Costs to Cost Objects
Topic : Cost Classifications for Decision Making
Topic : Cost Classifications for Manufacturing Companies
Topic : Cost Classifications for Predicting Cost Behavior
Topic : Cost Classifications for Preparing Financial Statements
Topic : Using Different Cost Classifications for Different Purposes
Gradable : manual
5) Learned Corporation has provided the following information:
Version 1 7
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,DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
Cost per Cost per
Unit Period
Direct materials $ 5.40
Direct labor $ 3.80
Variable manufacturing overhead $ 1.40
Fixed manufacturing overhead $ 38,250
Sales commissions $ 0.80
Variable administrative expense $ 0.70
Fixed selling and administrative expense $ 12,750
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make
8,500 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell
8,500 units?
c. If the selling price is $22.90 per unit, what is the contribution margin per unit sold? (Round
your answer to 2 decimal places.)
d. If 9,500 units are produced, what is the total amount of direct manufacturing cost incurred?
e. If 9,500 units are produced, what is the total amount of indirect manufacturing costs
incurred?
Version 1 8
mynursytest.store
,DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
Question Details
AACSB : Analytical Thinking
AICPA : BB Critical Thinking
AICPA : FN Measurement
Bloom's : Apply
Difficulty : 1 Easy
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-01 Understand cost classifications used for assigning costs to cost objects:
Learning Objective : 01-03 Understand cost classifications used to prepare financial statements: prod
Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c
Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co
Learning Objective : 01-06 Prepare income statements for a merchandising company using the traditiona
Type : Algorithmic
Topic : Cost Classifications for Assigning Costs to Cost Objects
Topic : Cost Classifications for Manufacturing Companies
Topic : Cost Classifications for Predicting Cost Behavior
Topic : Cost Classifications for Preparing Financial Statements
Topic : Using Different Cost Classifications for Different Purposes
null : Question Focus: Quantitative
Gradable : manual
6) Learned Corporation has provided the following information:
Cost per Cost per
Unit Period
Direct materials $ 5.20
Direct labor $ 3.85
Variable manufacturing overhead $ 1.35
Fixed manufacturing overhead $ 27,000
Sales commissions $ 0.50
Variable administrative expense $ 0.40
Fixed selling and administrative expense $ 9,000
Version 1 9
mynursytest.store
, DOWNLOAD THE Test Bank for Introduction to Managerial Accounting 9th
Edition Brewer
Introduction to Managerial Accounting 9th Edition by
Brewer CH01
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make
6,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell
6,000 units?
c. If the selling price is $22.40 per unit, what is the contribution margin per unit sold? (Round
your answer to 2 decimal places.)
d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred?
e. If 7,000 units are produced, what is the total amount of indirect manufacturing costs
incurred?
Question Details
AACSB : Analytical Thinking
AICPA : BB Critical Thinking
AICPA : FN Measurement
Bloom's : Apply
Type : Static
Difficulty : 1 Easy
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-01 Understand cost classifications used for assigning costs to cost objects:
Learning Objective : 01-03 Understand cost classifications used to prepare financial statements: prod
Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c
Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co
Learning Objective : 01-06 Prepare income statements for a merchandising company using the traditiona
Topic : Cost Classifications for Assigning Costs to Cost Objects
Topic : Cost Classifications for Manufacturing Companies
Topic : Cost Classifications for Predicting Cost Behavior
Topic : Cost Classifications for Preparing Financial Statements
Topic : Using Different Cost Classifications for Different Purposes
null : Question Focus: Quantitative
Gradable : manual
7) Arman Corporation's relevant range of activity is 3,000 units to 7,000 units. When it
produces and sells 5,000 units, its average costs per unit are as follows:
Average Cost per
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